Friday, February 16, 2007

Why ExxonMobil has Gone Green

This morning I was listening to my favorite business radio station in Houston (1320) and I hear the host, Brent Clanton, interviewing an oil industry analyst. First, he references this parody by the Houston Chronicle's Loren Steffy (yes, the same one I called crap) about ExxonMobil going green. Clanton wondered aloud why ExxonMobil has finally acknowledged global warming and why they are going green.

To me, it is not a shocking development. Here is the video of the probably next President:

That was a message straight to ExxonMobil's management. They are going to face a Democrat in the oval office who is keen on confiscatory taxes on their profits using global warming as a reason. Not that big government politicians need a reason, but it is easier to sell to the populous if they can drum up a reason to take money.

I found myself screaming at the radio station and the oil analyst who did a poor job convincing me of his knowledge of the oil business and reinvestment process. He criticized EM for repurchasing shares as well as being focused on the bottom line. I found his analysis to be strange with a little anti-capitalist language - something like "they are not focused on bringing gas to the market, they are focused on making the most money as possible." Well, EM's business is bringing energy and petroleum based products to the market in the most efficient manner in an effort to make a profit for its owners and shareholders. That is what EM does and it is the best in the world at doing it. That Hillary wants to punish success and the oil analyst wants to prevent the repurchase of company stock in favor of questionable exploration projects betrays some economic muddle-headedness I find unpalatable.

As for Business Radio 1320, I hope they do better with their guests in the future.


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